You mention multiple hyperscalers with strong businesses. These are companies that are monopolies. Total monopolies in their space. And they think they are at existential threat if they don’t participate in the space race.
Whether or not you characterize them as monopolies, my point is just that for the most powerful ones they have a strong enough business where they can sustain a potential loss in AI and the business would survive. Overall that will help any bubble deflation from being as catastrophic. Great point that they all believe that without massive AI investment their businesses will die in this next technology era. So each separately might be making a rational decision. But collectively the level of investment might be many times greater than needed in the market.
You mention multiple hyperscalers with strong businesses. These are companies that are monopolies. Total monopolies in their space. And they think they are at existential threat if they don’t participate in the space race.
Whether or not you characterize them as monopolies, my point is just that for the most powerful ones they have a strong enough business where they can sustain a potential loss in AI and the business would survive. Overall that will help any bubble deflation from being as catastrophic. Great point that they all believe that without massive AI investment their businesses will die in this next technology era. So each separately might be making a rational decision. But collectively the level of investment might be many times greater than needed in the market.